Managing personal lines customer expectations during the cost-of-living crisis

The webinar was hosted by Insurance Post in association with PayPal. 

Communication is vital

Personal lines customers feel the pinch, and households make savings wherever possible. With insurance usually being one of the first things to go, customers are in vulnerable positions and underinsured in times of need.

It’s not surprising that, despite the risks, consumers continue to take different levels of cover – sometimes by choice, other times through necessity. With downgrading or removing cover becoming more popular among consumers, insurers must communicate to their customers the consequences that come with the risks.

The webinar panel began by discussing the importance of customers being honest with insurers – not only for themselves, but to ensure that premiums don’t go up. Attendees stressed that keeping active communication channels open offers consumers a choice on how and when they interact with insurers, whether in person or online, and ensures that customers have the right level of coverage in place during these difficult times.

Natalie Bate, head of claims and managing general agents, Zurich, explained how offering frictionless digital journeys can help create “clear, effortless and collaborative” consumer relationships. With digital solutions becoming more integrated with customer journeys across the industry, it is vital for insurers to stop applying “bolt-on solutions” and instead invest in personalised, innovative, and frictionless alternatives.

Insurance has always been something people hope they will never need, so it is crucial claims are settled fairly and quickly to help put customers back on their feet in the event of unfortunate circumstances

Stefan Elks, Axa

“It’s about giving customers a choice – letting them control how and when they want to interact, and offering them that self-service proposition,” she said.

Yet it is also vital it is for insurers to hold onto the human element when communicating with consumers, especially in personal lines. Often, customers are dealing with distressing circumstances when making claims, so having personalised interactions readily available alongside frictionless digital alternatives is crucial to ensuring a smooth and painless journey for the customer.

Attendees emphasised how listening to suppliers and staff is essential to successful customer journeys. Consumer expectations have changed in recent years, with searching for alternative insurance options becoming more prevalent when looking for solutions that serve their needs.

“The insurance industry – through the good times and bad – has always come up with new products to meet the market’s demands,” said Simon Banks, director of merchant services at PayPal. He explained how coming up with products that meet consumer needs is something that the industry is good at, especially when customers are looking for “value and choice”.

With lines of communication being open across the board, customer expectations become easier to manage, and insurers better understand consumer needs and how to address them in trying times.

Building trust, providing choice

Insurance products are intangible – promises that insurers will do the right thing at the point of claim, and that is where the products’ value lies. Fulfilling these promises is critical to solidifying customer trust in insurance services.

Settling claims fairly and quickly, and offering good value in the market, reinforces trust. Ensuring customers understand the pros and cons of a policy and how various products can help consumers in their time of need provides choice and clarity.

But what can insurers do to continue attracting and retaining customers despite these turbulent economic times?

Stefan Elks, head of retail claims operations at Axa, explained how products must be “reasonably priced”.

“Insurance has always been something people hope they will never need, so it is crucial claims are settled fairly and quickly to help put customers back on their feet in the event of unfortunate circumstances,” he said.

People want to ensure their data is being handled correctly and that, should something go wrong, they are protected

Simon Banks, PayPal

Paying claims quickly and efficiently during an economic crisis is important for consumers, with “trust” playing a vital role, particularly at the point of claim. These moments matter the most for the customer, and that’s where insurers can jump in and really delight them.

Offering choice at the point of payment ensures customers are paid quickly and efficiently. Insurers must therefore continue to invest in digital solutions and provide various payment options for consumers.

The panel highlighted how trust and safety are “paramount” to the insurance product itself, and how offering multiple payment options is increasing in demand. They noted that consumers are becoming more reluctant to provide insurers with data and personal details when making payments.

“People want to ensure their data is being handled correctly and that, should something go wrong, they are protected,” PayPal's Banks commented.

“Offering the chance to pay now or over a set of instalments ... without charging the consumer interest ... is one way of easing the burden for someone waiting for another payment cycle to pay their insurance.”

Solutions such as these give consumers more clarity and choice in managing their finances. And, with economic uncertainty becoming ever more impactful on day-to-day life, providing alternative and safe payment solutions will further consolidate trust.

Loyalty is reliant on experience and innovation

The panel discussed how diversifying products can help insurers stand out in the current market. They agreed that modernising the industry will help retain and attract customers. Products such as pay-as-you-go insurance and black-box/telematics insurance can be lifelines for those in vulnerable positions looking to keep costs low.

One such modernisation is to improve data-inputting methods. Payment providers such as PayPal can be presented very early in the quote and bind cycle. Customers can link their existing payment accounts with insurance providers when seeking quotes to speed up the process. Using predetermined information from providers like this helps customers reduce the time spent on monotonous comparison sites answering the same sets of questions. Insurers can take their frictionless journeys to the next level by integrating and consolidating their data.

A word that was prevalent throughout the discussion was “transparency”. Alexandra H-C Borgnis, director of underwriting, Allianz Personal Lines/LV, explained how insurers should not be “congratulating themselves” for doing what they have always done. Still, they should be directly addressing key customer concerns to help insurers retain and attract customers.

Borgnis believes that “accepting that the world is changing” and keeping ahead of demands will lead to a loyal and reliable customer base. The panel agreed, claiming that, although insurers measure customer satisfaction, the key is understanding these metrics and translating the data into insight – and action.

Getting the customer experience right will attract consumers to your brand. And, with a fluctuating economy affecting customer finances and their general standard of living, showing innovation, reliability and transparency might just be the thing that convinces customers to stay.

The webinar concluded with the consensus that effective communication is vital to managing personal lines customer expectations, trust is paramount throughout the industry, and insurers must diversify their products to stand out from competitors on the market.

To access the full webinar, please click here.

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